If Direct Access Technology is basically the same...then why pay more for the same ? Example: 200 shares: Tracktrade.....$1.00 Xoom.............$1.50 IB...................$2.00 Realtick..........$10.00 Cybertrader...$10.00
Generally speaking there is no good reason to be paying more for your broker - they all do the same thing. First you have to decide whether you want direct access or not (recommended!). The advantage of some of the online type brokerages is that in many cases the "flat fee" structure works out to your advantage. If you trade 200 shares then a "per share" type fee structure will work in your favor. Do the same calculations on a 5,000 share order and those web based brokerages start looking a bit better. Also, brokers differ in services they provide. If the broker with superior charting and research only costs a little more, then it may make sense to go with them instead.
Don't think execution quality is equal. Other factors sale (or lack of) order flow, potential software fees, account minimums, and whether or not they charge ecn fees and sec fees. Also need to keep in mind reliability the brokerages finances, range of offerings, order types, etc. etc.